8 Feb 2019 07:00
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
NEW DEBT FACILITY
8 February 2019
Stenprop, the UK multi-let industrial (MLI) property company, has arranged a new £26.8 million senior loan facility with Lloyds Bank Commercial Banking.
The facility is secured against the 1.16 million sq ft MLI portfolio, which the Company acquired in December 2018 from Hansteen Holdings PLC for £67.9 million, excluding acquisition costs. It will be used to repay the majority of the debt drawn down from the Company's revolving credit facility with Investec Bank, which was used alongside existing cash resources to acquire the portfolio.
The 40% loan-to-value (LTV) facility was provided for a term of five years. The LTV ratio is consistent with the Company's strategy of reducing leverage across its portfolio to 40% by March 2020.
Once the sale of Euston House, London, which was announced on 10 January 2019, has completed and before any further MLI acquisitions, the Company's overall LTV will reduce to less than 45% and the MLI component will represent more than 41% of total assets, putting the Company firmly on track to achieve its 31 March 2020 target of being at 65% MLI with no more than 40% overall leverage.
James Wakelin, Head of Portfolio Management at Stenprop, said: "This new relationship with Lloyds Bank further diversifies our lending base and provides a potential additional source of capital to support our future growth plans in the MLI space. The utilisation of our Investec revolving credit facility to fund the initial acquisition, with senior finance put in place shortly thereafter, enables us to efficiently complete the transition into a 100% MLI company without incurring significant cash drag in the process".
Sam Prestidge, Associate Director at Lloyds Bank Commercial Banking, said: "We are pleased to have supported the financing of this MLI portfolio and start a new relationship with a highly-regarded sponsor in Stenprop. The innovation it is bringing to the sector is impressive and something we are delighted to be a part of".
For further information:
Stenprop Limited +44(0)20 3918 6600
Paul Arenson
Patsy Watson
Julian Carey
Numis Securities Limited (Financial Adviser) +44(0)20 7260 1000
Hugh Jonathan
Vicki Paine
Tavistock (PR Adviser) +44(0)20 7920 3150
James Whitmore
James Verstringhe
Kirsty Allan
Java Capital Trustees and Sponsors Proprietary Limited +27 (0)11 722 3050
(JSE sponsor)
About Stenprop:
Stenprop is a Guernsey-registered UK REIT. The objective of the Company is to deliver sustainable growing income to its investors. Stenprop's investment policy is to invest in a diversified portfolio of UK multi-let industrial (MLI) properties with the strategic goal of becoming the leading MLI business in the UK. For further information, go to www.stenprop.com.